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SB 5401: Relating to empowering DSHS, DEL, and HCA to establish and enforce debts against vendors who attempt to avoid their obligation to repay overpayment debts by creating new entities and yet continue to do business with those state agencies

Status Summary

SB 5401 was referred to the Senate Human Services and Corrections Committee, but was never scheduled for a hearing. Therefore, the bill died.

Legislative Session

2013

Status

Died

Sponsor

Sponsored by Senator Carrell, SB 5401 states that the department may collect overpayments from a vendor or from a vendor’s successor when it has established a vendor overpayment as a final debt, including when it has done so on behalf of the Department of Early Learning or the Health Care Authority. “Successor” is defined as a person or entity that receives or purchases all or part of the business or property of another person or entity where there is an agreement for the transferee to assume liability, the transfer is a de facto merger or consolidation, the transferee is a mere continuation of the transferor, or the transfer of assets is for the fraudulent purpose of escaping liability.